Loakan was then a part of the Tuba Municipality, Province of Benguet and the Ibalois were the original settlers, which was headed by a Teniente Del Barrio. Farming and cattle raising were the main source of livelihood. Dowakan grass was found everywhere so the settlers called the place “Dowakan”.

       In 1929, the first school in this place was established then one of the first teachers asked the leaders what is the name of the place, he misheard the word Dowakan to Loakan. He wrote it as Loakan and from then on, the place was called Loakan.